For City Council Meeting January 27, 2026
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Sachin Chawla, Director of Utilities
Title
Request City Council/Rialto Utility Authority to Continue Deliberation and Consider Approval of Revised Water and Wastewater Rate Adjustments for 2026 - 2030 (Lower Than Proposition 218 Notice) and Adoption of Resolution No. 8446 and RUA Resolution No. 26-01.
PRESENTATION
(ACTION)
Body
RECOMMENDATION
Staff recommends that the City Council/Rialto Utility Authority continue deliberation and consider approval of revised Water and Wastewater Rate Adjustments for 2026 - 2030 (lower than Proposition 218 Notice) and adoption of those resolutions.
BACKGROUND
Since 2012, the City has implemented rate adjustments in only 6 of the past 13 years, reflecting a deliberate approach to balancing infrastructure investment needs with ratepayer affordability. Over time, this approach has resulted in periods where inflationary pressures and capital investment requirements increased at a faster pace than utility revenues, contributing to the need for rate stabilization from the General Fund.
On July 23, 2024, the City Council/Rialto Utility Authority (RUA) Board adopted a one-year rate adjustment, effective January 1, 2025, for water and wastewater services. The one-year rate was based on a five-year financial projection. Staff were directed to return in 2025 with an updated rate analysis for Council/RUA Board reevaluation. In addition, the City Council/RUA Board adopted Resolution No. 8266 (Attachment 1) which authorized the loan repayment of $30 million from the General Fund to the Water Fund ($5 million) and Wastewater Fund ($25 million) to be used as rate stabilization.
In accordance with City Council's direction to return in 2025 for reevaluation, staff presented an updated analysis to the City Council/RUA Board to reassess the water and wastewater rates. On July 24, 2025, staff shared a proposed sch...
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